Central pivot point range (CPR) is a technical indicator used in trading to calculate the range of possible support and resistance levels for a given stock or security. It is derived from the high, low, and closing prices of the previous day and is used to generate trading signals. The CPPR is typically used to determine entry and exit points for day trading strategies.
The formula for the pivot calculation is as follows:
TC = (Pivot – BC) + Pivot
Pivot = (High + Low + Close) / 3
BC = (High + Low)/2
Support 1 = (2 * CPPR) - High
Resistance 1 = (2 * CPPR) - Low
Support 2 = CPPR - (High - Low)
Resistance 2 = CPPR + (High - Low)